Definitely Dave's Real Estate Blog

Should you invest in real estate? Actually, real estate investments can be a great addition to your retirement portfolio for a few reasons.

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Should real estate be a part of your investment portfolio?

There are a couple of reasons why having real estate as part of your retirement portfolio is a good idea:

1. Diversification. When you are investing for something so far in the future, you’ll want a variety of items in your portfolio, including stock, bonds, and real estate.2. Return on investment. When you calculate that you’re paying down the mortgage every month, appreciating rents, and tax breaks, your return could be well over 10%. Plus, once the house is paid off, you have a pure cash flow.

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Investing in real estate is a big commitment.

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Of course, there are also a few reasons why it may not be a good idea for you to add real estate to your investment property. For one, real estate always comes with surprises. You never know when the air conditioner will go out or the roof will leak.

Plus, when you invest in real estate, you are working with people. If someone is down on their luck, your emotions may cloud your decision on whether or not to evict someone or rent to them.

Investing in real estate is a big commitment. If you get laid off from your job, you don’t have to put money into your 401(k). If you get laid off and your rental property is vacant, then you are in a bit of a crunch because you are still responsible for paying that mortgage.

If you do decide to invest in real estate, here are a few recommendations:

1. Start with an easy property. I will set you up with a property to make the whole process fun and enjoyable. Soon, you’ll want to buy more real estate!2. Do your research. Make sure that you follow all of the rental licensing laws. 3. Be prepared to put 20% to 25% down. On a $300,000 house, that means you would need $60,000 to $80,000.

Ultimately, real estate can be a very rewarding investment. If you are interested in getting started with real estate investments, give us a call or send us an email. We would be happy to help you!

The right time to update your house is right after you buy it. That way, you can actually enjoy the updates and still get top dollar when the time comes to sell the house.

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I work with many people who are getting ready to put their home on the market, and before they do, they always want to know what updates they should make to it.

They usually opt for updating the kitchen, the backyard, or the master bathroom, but I have a secret about home updates I learned from my mother-in-law that I want to share with you.

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Update your house as soon as you buy it.

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She told us, “When you buy a house, update it.”

In other words, update your house as soon as you buy it so you can enjoy the updates while you’re living there. You’ll get the same benefits of those updates when it comes time to sell the home as well. If you want to enjoy your life, do the updates now and get top dollar at the sale.

If you have any questions or are looking to buy or sell a house in northern Colorado, don’t hesitate to give me a call. I’d be happy to help.

I work with a lot of real estate investors. Each one is different, but they all recognize the importance of the cap rate.

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I work with a lot of real estate investors. Although they each are looking for different features in investment properties, they all have one common thread. They all use the cap rate to determine if a property is a good buy or not.

What is a cap rate? It’s short for capitalization rate, and it’s essentially a measure of your expected return on your money in the short term. For example, let’s say you bought a property for $500,000 with a 7% cap rate. That means you would get 7%, or $35,000 back after expenses each year.

Even if you have to get a mortgage for the property at 4%, you will still earn the difference between the mortgage and the cap rate (3%) in cash. That’s still $15,000 in cash flow on a $500,000 home, plus an additional 7% on your down payment.

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Most investors use the cap rate as an important metric.

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With interest rates so low, now is a great time to buy an investment property and realize that great cash flow. In Boulder, cap rates are around 4% or 5%. In Denver, they are around 6%. In Longmont, cap rates are at 7%.

Whether you’re looking to buy or sell, I love working with investors in this market. If you have any questions, don’t hesitate to reach out and give me a call or send me an email. I would love to hear from you.

How are changes in the market going to affect buyers and sellers in the Denver metro and northern Colorado? I’ll answer that for you today.

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What changes are happening in the market? I’ll go over what you can expect to see.

There are now two separate Realtor databases, one for the Denver metro area, and one for northern Colorado. What does this mean for you?

As a buyer, you should be able to find some really good deals. Homes that are not listed in both databases won’t get the exposure they need to get multiple offers. If a home is only listed in one database or it’s improperly marketed, you might be able to snag it without competition driving up the price.

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Buyers could snag a great home without a lot of competition.

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As a seller, you need to make sure you list your home with an agent that uses both databases to market homes. The key to getting your home sold in the least amount of time for the most money is exposure.

If you are looking to buy or sell a home, or if you have any other real estate questions, feel free to give me call or send me an email. I look forward to hearing from you!

Buying a new construction home can be tricky. Here’s what you should know beforehand.

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In northern Colorado, you see ads for new home builds all over the place. They might advertise prices like “starting at $400,000” or “starting at $600,000” but how much does it actually cost to buy one of these homes?

With one builder, a $400,000 house may end up costing you $450,000. It may end up costing you $600,000 with another. That’s quite a range and all the more reason to have a top agent working with you. They can help you sort through the fine print and make sure you know exactly what you’re getting into before you pull the trigger on buying.

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A top agent will be able to guide you properly.

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New construction prices typically don’t cover things like A/C units, refrigerators, washer/dryer, or landscaping. These are all things for you and your agent to consider before deciding to buy a brand new home. No matter the outcome, a top agent will be able to lead you in the right direction in order to accomplish your real estate goals.

If you have any questions for us, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.

A lot has been going on in the first quarter here in the Boulder real estate market. I’ve got some key updates for you today.

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What’s been going on in the northern Colorado real estate market so far in the first quarter of 2017?

One thing we’ve noticed a lot of is new construction. This has begun to have the effect of putting a lid on the price of resale homes in the area.

For example, you can buy a home in Boulder for around $400,000, which has prevented resale homes from increasing in value. Anything in the $400,000 to $800,000 range has appreciation limited by what these builders are doing. We’re also seeing builders increase their prices by $2,000 or $3,000 every couple months, which is also putting a lid on price appreciation.

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I’ve seen more lots for sale in the last six months than the last 10 years combined.

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We’re also seeing an oversupply of inventory of homes in the $800,000 to $1.4 million price range. If you’re looking to buy a home in that price range, there are some really good values out there. On the other side, if you’re looking to sell your house in this price range, you might have some trouble due to all the homes on the market. However, from $1.4 million to $5 million, we’re still seeing very low inventory and strong demand from a lot of buyers.

One other thing I’m seeing this year that I haven’t seen in the last decade is land selling. I think it’s due to all the extra new construction and the lack of available lots for sale. In fact, I’ve seen more lots for sale in the last six months than the last 10 years combined. That said, land prices are still below what they were at the market peak of 2001 and 2002. If you’re looking to buy land, now is a great time.

If you have any other questions or you’re looking to buy or sell a home in the Boulder area, just give me a call or send me an email. I’d be glad to help.

Hiring the “neighborhood agent” to sell your home is a risky move, and here’s why.

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Why should you avoid hiring the “neighborhood agent?”

I’ve been doing this for a long time, and one thing I always notice with these kinds of agents is that their homes are on the market for a long time and selling for less money.

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Always hire an agent who is honest and trustworthy.

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Why does that happen? It’s simple—their motivation is different than their sellers’ motivations. Whereas most sellers want to sell their homes quickly and for the most money possible, neighborhood agents just want to get those homes listed in a certain neighborhood so they can have a sign out front to act as branding for them to attract other buyers and sellers to their business.

If you’re in the hunt for real estate agent, it might not be in your best interest to hire the neighborhood agent. You’re much better off hiring someone who is honest and will sell your home quickly and for top dollar. I am that agent.

Whether you’re buying or selling and you need an agent who knows the market, please don’t hesitate to give me a call. It would be my pleasure to help you achieve your real estate goals.

Many first-time buyers don’t know the kinds of insurance they should have. We are clearing things up today.

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When you’re getting ready to buy a home, especially if you’re a first-time buyer, you might not know what kind of insurance you’ll need on the home. Here are three types of insurance that most buyers should have:

1. Homeowners insurance. A lot of times, your lender will require you to have this in order for your loan to go through. You can get a policy from a big company like Farmers or State Farm and it will cover your home in case there’s a fire or storm damage.

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You want an agent who knows things like this.

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2. Umbrella policy. This will protect your home as an asset in the event somebody slips out in front of it or you get in a car accident and someone tries to come after your house.

3. Life insurance. This type is really important and often overlooked. If you’re starting a family or you just got married, you want life insurance. If something happens to you, you want to be sure your family is taken care of and they don’t lose the house.

Whether you’re buying or selling, you want an agent that knows the market like myself. If I can help you in any way, give me a call or send me an email. I look forward to hearing from you.

We see a lot of homes that failed to sell coming off the market this time of year. This usually happens for one of three main reasons that we see over and over again that are easy to avoid.

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This time of the year, we see a lot of homes coming off the market after being listed for up to six months or more without selling.

When a house fails to sell, it usually happens for one of three main reasons:

1. Condition. The house might smell bad, like pets or smoke. Maybe the house is on a busy road or near train tracks. Having something wrong with the home’s condition makes it difficult to sell.

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When a house fails to sell, it usually happens for one of three main reasons.

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2. Marketing. The pictures of the home might be bad or don't represent the home well. Maybe it's a case where all the agent did was stick a sign in the yard. The home simply wasn't exposed well to the market.

3. Price. Our market here in Boulder is very price sensitive. If you price correctly, the home will sell right away. If you overprice the home, even by just a little bit, it could sit on the market for months with no offers whatsoever.

My team and I specialize in selling these kinds of homes. If you have any questions about why homes fail to sell or you're thinking about buying or selling a Boulder home, give us a call or send us an email. We'd love to work with you.

How can you tell if the market is starting to slow down? Today I'll walk you through the top three signs to look for and how they might affect you.

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Today, I wanted to point out the three signs to look for in a slowing market.

The first is an increase in days on market. Here in northern Colorado, we've been steady at about 10 to 15 days on market for the last several years. I think that once we get up to about 60 to 75 days on market, we'll begin to see the market slowing.

Secondly, we can look to higher listing inventory. Currently (and over the last several years) if you look at the number of homes for sale, we have about 45% under contract. When we get down to about 10% to 15%, it will be another sign of the market starting to slow. We don't see any signs of that right now.

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There's no sign of buyer optimism falling in our market.

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The third sign of a slowing market we can look to is waning buyer optimism. In other words, are buyers holding off, waiting for prices to drop, or being nervous about putting in an offer? We see absolutely no signs of that, even with an increasing federal funds rate. The economy is so strong that buyers are excited and ready to buy a home.

As you can see, we don't really have these indicators in our market. It should continue to stay strong.

If you have any additional questions about the northern Colorado market or you're looking to buy or sell a home, give me a call or send me an email. I'd be happy to help!

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The Definitely Dave Real Estate Team

Dave Janis is the go-to choice for Boulder and Denver area real estate services, with over 60 sales in the last 12 months. Dave ranks in the top 1% of Realtors nationwide, the top 100 agents in Colorado, and the top 5 agents in Coldwell Banker Colorado. With Definitely Dave, there is a difference. Dave's proactive and aggressive marketing plan is a proven system for getting your home SOLD, and his fully trained staff provides a superior and unmatched customer service experience. When a client hires Definitely Dave, they aren't just hiring one agent, they are hiring a highly qualified and exceptionally talented TEAM!

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Testimonials

We had a very rocky journey when selling our mountain property outside of Denver for a multitude of reasons. First of all, there was the weather. Then random problems with the property itself. Then issues with contractors, dishonest negotiators, etc. Basically everything that could've gone wrong went wrong. Dave and Amanda, however, were constant throughout the process and never once varied the level of service they were willing to provide. Quite to the contrary, they consistently did more than was required of them as seller's agents and repeatedly surprised me by the level of care and dedication they showed by going above and beyond at every bend in the road. I can say with 100% certainty that we would not have sold the house at the price and within the timeframe we did. We were out of state during the entire process, so I can rather confidently say we likely wouldn't have been able to sell at all without their willingness to take the driver's seat and roll up their sleeves on the ground. 5 stars all around.

Eric R., Sold a home in Golden, CO

Dave Janis sold our home before the sign was in the ground or it seemed that fast. Dave was very helpful throughout the negotiations and the closing. I would HIGHLY recommend Dave to help you sell your home or help you purchase another.

Nick C., Sold a home in Boulder, CO

All we can do is speak from experience...so here was ours. In the spring of 2014, when we decided to hire a Realtor to sell our house we wanted to hire the best. So we did a little research on who was doing the best in our area and Dave Janis's name came up. We had a couple of initial meetings where he gained our trust and confidence and ultimately he earned our business. He and his team, particularly Amanda, were in awesome communication with us every step of the way. They were easy to work with and demonstrated the highest level of professionalism throughout the entire process. His advice and guidance was beyond any experience we've ever had working with a real estate agent in the past. Bottom line - from the day we hired Dave to the closing on the sale of our house was exactly 9 weeks! We couldn't have been more thrilled. We could recommend Dave Janis and his team to anyone and will certainly hire him again. Thanks Dave!

Valerie S., Sold a home in Boulder, CO

Dave is an amazing professional. Throughout my house sale, he was insightful, knowledgeable, and willing to offer an informed opinion when asked. He was very thorough in everything he did, very informative throughout the process and always friendly and never pushy. He was a terrific negotiator and always available for a consult. I'd recommend him to anyone as a valued ally in the real estate market.

Laura S., Sold a home in Niwot, CO

Dave and his staff were wonderful and super flexible in helping us sell our downtown Boulder condo in March 2015. He made the whole experience as smooth and stress free as possible, and he worked with me to get me exactly the services I needed at a fair price. I would recommend Dave to anyone without reservations. Totally professional operation.

Robert L., Sold a home in Boulder, CO

Definitely Dave Janis sold my home in fall 2014. I had come to the situation from very trying and stressful circumstances. I needed someone who could pick me up where things were and guide me through to a successful outcome. Dave was the perfect person to do exactly that. He's good! I immediately liked and trusted Dave - both personally and professionally. He and Amanda are a great team. I absolutely refer him to my friends and anyone who is looking to buy or sell a home.

Sam M., Sold a home in Louisville, CO

I interviewed several agents after a disastrous first go-round with another agent. What a refreshing change it was to work with Dave and Amanda! They actively marketed my home, kept me apprised of the local real estate market, and recommended changes to get my property sold. Upon receipt and acceptance of an offer, Dave and Amanda kept me apprised of the process every step of the way, and patiently listened to my concerns when the buyer's mortgage lender made a few mis-steps. I'll work with this team again, and heartily recommend them!

Susan F., Sold a home in Arvada, CO

Was a very pleasant experience. Dave Janis's company, especially Amanda Nieser, were very helpful. They got me more than I was expecting for the property and arranged all the work that needed to be done because I was out of state. I had renters occupying the unit and they went above and beyond to accommodate the tenants while selling the home. They answered all questions and concerns with a professional understanding of my individual needs.

David S., Sold a home in Idaho Springs, CO

My husband and I had previously listed our home with another agent that had us overpriced, after 3 months we took our home off the market. Shortly after that, Dave contacted my husband to set up a meeting. From the beginning, Dave has done what he said when he said he would. The photographs of our house were amazing. In less than 3 weeks we were under contract to sell. I highly recommend Dave Janis.

Mandy G., Sold a home in Arvada, CO

It was December 3rd, 2014 when we had our house removed from the MLS due to our previous realtor having a lack of tenacity and interest in selling our home. That same morning I got a call from Dave. He was very motivated and confident that he could sell our house. Dave and his team were very knowledgable and responsive in handling the house sale. Dave sold our house in 10 days. I have recommended Dave's services to friends and family. We definitely plan on calling him in the future as well.

Dan S., Sold a home in Berthoud, CO

We were new to the Denver area but knew the area we wanted to live in. Dave came highly recommended to us by a colleague. Dave and his colleague Amanda were the most responsive, knowledgeable real estate folks we have ever worked with. Our many questions were answered directly and the entire process was extremely easy. I highly recommend Dave and Amanda with any of your property needs.

Sean B., Bought a home in Lafayette, CO

I had used another agent to try to get the property sold but they only brought me one offer that went no where and was well below my asking price. Then I asked Dave to sell the property. He did things the other agent would not that made a difference in getting the property sold. Dave went above and beyond with professional photos, listings in all major real estate websites, and his suite of technology kept me informed about what was going on with the market and my property. My email and phone calls where always answered in a timely fashion. I felt he listened to what I wanted and advised me on what to expect based on his knowledge of the market. The property sold in three days.

David N., Sold a home in Longmont, CO

I worked with Dave to prepare and sell my brother's condo in Boulder. He was very attentive to my needs and very professional in his efforts. His assistant, Amanda, is amazing. Both were very responsive to any of my inquiries. Their work resulted in a quick sale at above the asking price! I would highly recommend Dave!

Diane C., Sold a home in Boulder, CO

We recently worked with Dave as buyer's agent on the purchase of a home in Longmont. Dave was recommended by a friend and we were very pleased with his service. As out of town buyers, Dave was extremely helpful in price negotiations, doing the final walk through, helping to organize home inspection, financing and represented us at closing. The whole experience from identifying potential properties, prescreening them for us and arranging showings to maximizing our time in Colorado was excellent.

Deb R., Bought a home in Longmont, CO

We recently worked with Dave as buyer's agent on the purchase of a home in Longmont. Dave was recommended by a friend and we were very pleased with his service. As out of town buyers, Dave was extremely helpful in price negotiations, doing the final walk through, helping to organize home inspection, financing and represented us at closing. The whole experience from identifying potential properties, prescreening them for us and arranging showings to maximizing our time in Colorado was excellent.

Deb H., Sold a home in Mead, CO

Dave is a solid professional who has earned our trust representing us in two different real estate transactions in Louisville. He knows the Boulder area well and was invaluable in making sure we had the information to make the best decision for us. He's also friendly, prompt in responding to questions, and a good communicator--in short, a pleasure to do business with. I recommend him without hesitation. You'll be in good hands with Dave!

Randy S., Bought and sold homes in Louisville, CO

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We could not have purchased the property we did without Dave Janis! We were waiting for a local builder to release new lots and we were living out-of-state at the time. Dave did all the leg-work. He attended the grand opening, transmitted all the floor plans, and got the builder to answer all our questions. He even was able to get our sales appointment with the builder moved up when bad weather canceled the local in-person sales appointment. Dave made it happen and was a pleasure to work with. Don’t hesitate to put your trust in Dave.

Ross J., Bought a home in Louisville, CO

We recently worked with Dave as buyer's agent on the purchase of a home in Longmont. Dave was recommended by a friend and we were very pleased with his service. As out of town buyers, Dave was extremely helpful in price negotiations, doing the final walk through, helping to organize home inspection, financing and represented us at closing. The whole experience from identifying potential properties, prescreening them for us and arranging showings to maximizing our time in Colorado was excellent.